Deposit is an umbrella term for any money you receive into any account you track in TradeMax. There are times when you want to deposit a sum of money to an account to better manage your transactions . Follow the step-by-step wizard to deposit money into account.

Why do we withdraw from an account?
There are times when you want to withdraw a sum of money from an account to conduct other transactions. TradeMax provides you with such a function to manage your portfolio better .

Return of capital (ROC) refers to payments back to “capital owners” (shareholders, partners, unitholders) that exceed the growth (net income/taxable income) of a business. The ROC effectively shrinks the firm’s equity in the same way that all distributions do. It is a transfer of value from the company to the owner. Since the ROC shrinks the business and represents a return of the investors’ own money, the ROC payment received may not be taxed as income. Instead it may reduce the cost base of the asset. This results in higher capital gains when the asset is sold, but defers tax.

With such a function, Trademax makes it easier to better adjust the cost basis of the stock by that amount.

With the market as it is, many of you might decided to include shorting in your investment strategy. It’s quite possible that one of the companies that you shorted was one that pays a cash dividend. Since you are likely borrowing the shares that you initially sold to create your short position, you are required to reimburse the lender of the stock for the dividends that he missed. Your broker probably notified you of that fact, and reduced your cash position in your account by the amount of the dividend.

Just follow the step-by-step wizard to generate your Dividend Paid on Short Sales record

With such a function, Trademax make it easy to better adjust the cost basis of the stock by that amount.

Select the record to which you want to make your Div Paid on ShortSales.l

Supplemental Instructions : Let’s say you short 1000 shares of ABC Company on March. 1 at $10 a share. On Mar. 16th, your broker notifies you that your account will be reduced by $50 for the dividend paid by ABC Company to its shareholders. On April 10, you close your short position by buying 1000 shares of ABC at $8 a share. Since the short position was not open for at least 46 days, you cannot use the $50 in-lieu-of-dividend payment as a current expense. Rather, this $50 is added to the price of the stock that you purchased to close the position. In the example above, your net gain on your short position would be $150 ($1,0000-($8000+$50)=$150).

Let’s use the same example, but change the dates. Let’s say that you don’t close the short position until May 15. In this case, the in-lieu payment of $50 would be treated as investment interest, which is deductible on Schedule A (assuming that you itemize your deductions), and your gain on the closing of the short position would be $200.

TradeMax uses strict “First In, First Out” (FIFO) trade matching as a default. It also provides the function which enables the user to discard FIFO trade matching. It will help you to avoid changing your long-term investment to short-term one.

The following figure provides you step-to-step wizard of trade matching:

For example, if you buy HPQ 1000 shares on January 13, 2008, and 500 shares on January 14, 2008. Then sell 400 shares on February 12, 2008. You will see these transactions as records in the data grid like this:

Note: The TradeMatch function is available only if the trade’s action is closed. For example, in January 13, 2008, you sell HQP to close the position.

Double-click on the cell under the column TradeMatch at far right of the row 434(refer to the picture above), or just right-click the 434 record and select the TradeMatch from its context menu.You will get the following popup box:According to the“FIFO” rule, the share to sell must come from the transaction happened on January 13, 2008. But in this section, TradeMax provides you the “force-match” function using which you can sell the shares of stock bought on January 14, 2008.

Enter the specific shares under the column Shares to sell in January 14, 2008 (In this example, we enter 400). Then click on the OK button to finish the process and you will see the TradeMatch amount in the data grid like this: